Toshiba receives 400-billion bid for 19.9% stake in flash memory business: report

Toshiba has received an offer of 400 billion ($3.6 billion) for a 19.9-per cent stake in its flash memory business, Reuters reported citing a person directly involved in the deal. Other bidders had offered 200 billion.

The bidders included rivals SK Hynix and Micron Technology and financial investors like Bain Capital.

Toshiba had sought to raise around 300 billion from the stake sale, according to Reuters' source, who wished not to be named as he was not authorised to speak to the media.

Toshiba needed to raise funds by the end of March to offset a likely multi-billion dollar writedown on Westinghouse, its US nuclear power business.

Toshiba Corp's losses are likely to have exceeded its assets as of the end of December.

The Tokyo-based electronics appliance maker's estimated loss from its nuclear business in the US stood at about 700 billion, while its capital stood at 360 billion at the end of September.

If the loss in relation to its capital were to be reported in the company's financial statement for the October-December quarter, Toshiba would be in capital deficit.

If Toshiba's deficits were to exceed its assets as of 31 March, the end of its business year, the company's shares would be moved from the TSE's First Section to the Second Section. In the event of Toshiba's failure to rectify the situation within a year of that date, its shares would be delisted.

Toshiba is scheduled to announce the full scale of the loss on 14 February, in its financial statement for period from April to December 2016.